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Different returns to different degrees? Evidence from the British Cohort Study 1970

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Author Info
Bratti, Massimiliano (Università degli Studi di Milano)
Naylor, Robin (University of Warwick)
Smith, Jeremy (University of Warwick)

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Abstract

As in many other countries, government policy in the UK has the objective of raising the participation rate of young people in higher education, while also increasing the share of the costs of higher education borne by students themselves. A rationale for the latter element comes from evidence of a high private return to university undergraduate degrees. However, much of this evidence pre-dates the rapid expansion in the graduate population. In the current paper, we use evidence from a cohort of people born in 1970 to estimate hourly wage returns to a university degree. Among other results, we ?nd (i) that compared to an earlier 1958 birth cohort the average returns to a ?rst degree for men changed very little, while the return for women declined substantially and (ii) substantial evidence of differences in returns to a first degree according to subject area of study and class of degree awarded

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Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 783.

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Length: 30 pages
Date of creation: 2007
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Handle: RePEc:wrk:warwec:783

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Related research
Keywords: degree return subject UK university

Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J4 - Labor and Demographic Economics - - Particular Labor Markets
I2 - Health, Education, and Welfare - - Education

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  1. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages F150-F166, February. [Downloadable!] (restricted)
  2. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512. [Downloadable!] (restricted)
  3. Arnaud Chevalier & Gauthier Lanot, 2002. "The Relative Effect of Family Characteristics and Financial Situation on Educational Achievement," Education Economics, Taylor and Francis Journals, vol. 10(2), pages 165-181, August. [Downloadable!] (restricted)
  4. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  5. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2003. "Fifty Years of Mincer Earnings Regressions," IZA Discussion Papers 775, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. J. Dominitz & C. F. Manski, . "Eliciting student expectations of the returns to schooling," Institute for Research on Poverty Discussion Papers 1049-94, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  7. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers 1588, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February. [Downloadable!] (restricted)
  9. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does It Pay to Attend a Prestigious University?," IZA Discussion Papers 848, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Pedro Telhado Pereira & Pedro Silva Martins, 2004. "Returns to education and wage equations," Applied Economics, Taylor and Francis Journals, vol. 36(6), pages 525-531, April. [Downloadable!] (restricted)
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  11. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May. [Downloadable!] (restricted)
  12. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen. [Downloadable!]
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